Trump Threatens India With New Tariffs Over Russian Oil Purchases

The United States may impose new tariffs on India if it does not curb its purchases of Russian oil, President Donald Trump told reporters aboard Air Force One, Reuters reported.

"[Indian Prime Minister Narendra] Modi is a good guy. He knew I was unhappy, and it was important for him to make me happy. They are trading, and we can raise tariffs on them very quickly," Trump said when asked about India’s purchases of Russian oil.

Reuters noted that Indian markets reacted to the remarks on January 5, with the information technology stock index falling about 2.5% to its lowest level in more than a month. Investors are concerned that strained trade relations could further delay the conclusion of a trade agreement between the United States and India.

• On august 27, USA introduced a 50% duty on Indian goods due to India's purchases of Russian oil.
• US sanctions against Lukoil and Rosneft, which came into effect on November 21, collapsed the price of Russian oil Urals for India (its largest importer) and sharply increased rates for supertanker freight on key routes.
• Russian oil imports to India in December fell to a three-year low at 1.2 million barrels per day, up from 1.84 million barrels per day in November.